Very important for the economy-wide understanding of risk is the theory

It is very important for understanding the general economic theory of risk is an American economist F. Knight, according to which the risk - is the result of any activity which can be measured by methods of probability theory and the law of large numbers. If these calculations can not be performed, this activity is the result of uncertainty. On the concept of risk is associated with the economist uncertainty, which is a source of profit, which may be technically measured, and evaluated using the method probabilistichnih (probability) calculations. Moreover, the risk can be represented by a logical probability, based on knowledge of the laws of nature and society, through statistical probability, which reflect the collection, storage, analysis and systematization of statistical data. In the economic and financial-economic activity of the subject, as stated in the Financial Dictionary, under the risk aware "aware of the possible risk of unexpected losses expected profits, property, money, due to random changes in the conditions of economic activity, adverse circumstances. Measure the frequency, probability of occurrence of a a certain level of losses. sufficient to complete and modern is the definition of risk, which is given in the textbook "Financial Management" edited by prof. Kireytseva GG: "A risk should be understood as the possibility of damage due to the action in the vast majority of external factors in assessing (before deciding) were unknown and whose influence can change the probability of achieving the desired result. " Category: Risks in Banking | Tags: risk